Estate Planning (EP) is an important process involving making decisions and implementing procedures regarding a person’s assets upon death. Wills and Trusts have been around for a long time, though relevant laws have changed, and current laws differ from state to state or among various jurisdictions.
However, as long as Wills and Trusts have existed, people have been trying to do it themselves, often with mixed results. There is a very long history, with many examples of intended estate plans working out as the deceased person had envisioned.
In more recent history, people would buy forms from printers or office stores, buy books to guide them through the process, or find forms at the library, and try to do it on their own. In the last 25 years, with the rise of the internet, Do-It-Yourself (DIY) EP online has become an enticing option for many individuals.
Advantages of DIY Wills and Trusts
DIY Estate Planning (EP) has benefits that make it an attractive option for many individuals.
- Ease of Use and Simplicity:DIY EP platforms are typically user-friendly and designed simply. This means even those with limited legal knowledge can use them to construct a basic Will. However, sometimes forms can be deceptively simple, perhaps not asking relevant questions that should require consideration.
- Affordability: One of the most compelling aspects of DIY EP is the cost. A traditional EP with a professional attorney can be more expensive. In contrast, DIY EP offers a cost-effective alternative, presenting significant monetary savings. However, is that money you are saving today being lost several times over in the long run if your EP is not set up optimally?
- Convenience: With DIY EP, you may be able to draft your Will from the comfort of your own home, at your own pace, and at any time convenient for you. It eliminates the need to schedule and attend meetings with your attorney, whether in person, by phone, or by Zoom. However, this comes at the expense of having no one to explain the process to you or answer questions.
- Privacy: Some people prefer to keep their financial matters private. DIY Wills allow for this privacy, eliminating the need for a third party. However, remember that attorney-client privilege and confidentiality apply when you hire an attorney.
- Suitability for Small or Simple Estates: DIY Wills can be a great choice for very simple or small estates—those with few beneficiaries and uncomplicated or limited assets— DIY effectively caters to very basic estate planning needs.
Disadvantages of DIY Wills, Trusts, and Estate Plans
While DIY Estate Planning (EP) has some advantages, it’s important to understand the potential risks and complications that are often involved:
- Risk of Errors or Omissions: Without professional legal guidance, the risk of making mistakes or leaving out essential details in DIY Wills is very high. Misunderstanding legal jargon or overlooking important clauses can have serious consequences. Please keep in mind that these types of oversights or mistakes are likely to be discovered only after a person dies when it is too late to correct or change them!
- Potential Future Financial Implications:Tiny mistakes made while writing a Will or titling assets, retitling assets, creating a Transfer on Death or Beneficiary Designation, or funding a Trust can lead to large financial or legal consequences in the future. Errors or omissions can lead to unintended results, confusion, legal challenges, and legal costs that far outweigh the initial savings of a DIY Will.
- Time-Consuming Resolutions:Mistakes made during the process of making a DIY Will or Trust are usually discovered after the person dies, and it is too late to fix the mistake or change the document. Dealing with such issues can be stressful and time-consuming, lead to unnecessary delays in the distribution of assets, and can result in legal disputes amongst potential beneficiaries. Additionally, if a person discovers mistakes while still alive, it may be more expensive and time-consuming to fix the errors now than it would have been to hire an attorney in the first place.
- Inability to Cater to Complex Estates: DIY Wills are typically designed to handle basic estate planning scenarios. They are generally not suitable for complex estates, which include real estate, businesses, blended families, or other complex family dynamics. Additionally, DIY Trusts often are ineffective because they are not “funded,” meaning the creator makes out the Trust but then does not properly title all of their assets in relation to it.
- State Legal Requirements: Each state has its legal requirements for Wills and Trusts. DIY Will and Trust packages OFTEN do not account for these variations, leading to all kinds of complications, up to and including making a completely invalid or ineffective Will or Trust. For example, if you find a form online, it may not mention a State in the document. Where was the form made, and is it congruent with Missouri Laws? Just because it is found online does not mean it is effective, legal, or valid.
- Limited Flexibility:DIY Wills are typically not flexible enough to cater to unique or unanticipated situations. The “fill-in-the-blank” “one-size-fits-all” approach might not fit your estate, especially if you have any special provisions or overriding circumstances that you would like to address.
- Are You Really Saving Money or Time? For the above reasons and many more not listed here, please note that it is almost always more expensive to NOT hire an attorney than to simply hire one! You may think you are saving money now, but what is it costing you or your loved ones in the long run?
Considering all of the above factors is important when deciding between Doing It Yourself versus hiring a knowledgeable legal professional to assist you.
Why You Need Legal Counsel in Estate Planning
Planning your estate is a big responsibility, and it’s an area where a lawyer can be of great service. We have knowledge and experience and can guide you smoothly through the process and truly understand the implications of each and every choice you make. Seemingly small decisions can have huge consequences after you are gone.
One of the most important things a lawyer can do is offer a comprehensive approach, asking all the right questions and ensuring nothing is left out. A good estate planning lawyer will leave little to no room for confusion about what you want.
Each state has its laws regarding Wills and Trusts. A good estate planning lawyer knows these laws and can advise you accordingly. This means that when the time comes, your Will or Trust is going to stand up and be effective.
Another area where an estate planning lawyer can help is to increase the chances that things remain civil among the people you leave behind. A good estate planning attorney can envision where there might be arguments or problems with your Will or Trust, and sort them out before they happen. If there are any disagreements when the time comes, your lawyer can help sort those out, too, and clarify what the document says and what your intent was.
It’s worth thinking twice before you decide to go it alone and make your own Will or Trust, without the assistance of an attorney.
Choosing the Right Path in Estate Planning
While doing your own Estate Planning might seem attractive due to its perceived convenience and cost, the risks and potential associated issues are significant. If you play the video all the way to the end – are you really saving yourself time and money? Are you saving your beneficiaries time, money, and stress?
A DIY Will might seem like a quick fix, but it has considerable potential for errors, future legal disputes, and unintended financial or legal implications. When securing your assets and ensuring a smooth transition for your loved ones, it’s important to seek the expertise of a professional estate planning lawyer.
If you have questions about this issue, a estate planning attorney in Springfield, MO can help you understand the legal risks and the best path forward.
Please consider Estate Planning as an investment in your family’s future rather than just an administrative task. As with any important decision, it’s always wise to seek professional advice. A well-planned estate can provide you and your loved ones peace of mind, knowing that your wishes will be respected and carried out as intended.
